Excise Duty Framework Updated for CNG–Biogas Blends
Court / Authority
Indirect Taxes and Customs (CBIC)
Update / Judgement Date
01 Jul 2026
Source
WCP News Bulletin
Author
Manas Yadav — WCP Legal Desk
Reading Time
1 min read
View Count
The Ministry of Finance, Department of Revenue, has issued Notification No. 02/2026–Central Excise dated 1 February 2026, amending Notification No. 11/2017–Central Excise. The amendment has two significant implications for the energy and fuel sector.
First, the validity of a key proviso linked to Sl. No. 3 in the existing exemption table has been extended, with the sunset year revised from 2026 to 2028. This provides regulatory continuity and certainty to affected industries.
Second, a new entry, Sl. No. 9A, has been inserted to specifically address Compressed Natural Gas (CNG) blended with Biogas or Compressed Biogas (CBG). Such blended fuel will now attract central excise duty at the rate of 14 percent. Importantly, the notification clarifies that, for valuation purposes, the excisable value of blended CNG will exclude the value of the biogas or CBG component, as well as the GST already paid on that component.
The move reflects a policy balance between revenue considerations and promoting cleaner, blended fuel alternatives.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about Indirect Taxes and Customs (CBIC)
- What is the CBIC?
- The Central Board of Indirect Taxes and Customs (CBIC), in the Department of Revenue, Ministry of Finance, administers customs, central excise and the Central GST and IGST. It issues notifications, circulars and instructions that field formations follow.
- How do importers and exporters file customs documents?
- Bills of entry and shipping bills are filed electronically through ICEGATE, the CBIC's customs e-commerce gateway. Most bills of entry are assessed under the Faceless Assessment system.
- How do I appeal against a customs order?
- A first appeal lies to the Commissioner (Customs Appeals) within 60 days, with a pre-deposit of 7.5 per cent of the duty in dispute. A further appeal lies to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) within three months, with a pre-deposit of 10 per cent.
- Where are CBIC notifications published?
- Notifications and circulars on customs, GST and central excise are published on the CBIC website (cbic.gov.in) and in the Gazette of India, under separate series for tariff and non-tariff notifications.
- How can White Collar Professional help with a customs or CBIC matter?
- Post your requirement on White Collar Professional to receive proposals from verified Chartered Accountants, customs brokers and Advocates, compare them, and pay securely through the platform. This page also tracks the latest customs or CBIC CBIC and customs updates as they are reported.
